Trend Micro adds to line of Web security software

By Jim Finkle

BOSTON, Sept 26 (Reuters) - Japan's Trend Micro Inc (4704.T) said on Wednesday that it will start selling software to thwart keyloggers -- malicious computer programs that steal data by logging every stroke a user types, including passwords and financial data.

The No. 2 provider of consumer security software in the United States said the anti-keylogging technology works by encrypting data as keys are pressed, making the data useless to thieves who gain access.

"It's a good idea," said computer industry analyst Rob Enderle.

He said he believes hackers will figure out how to develop keylogging software that can get around the new product, but that it will probably take them several years to do so.

The technology is one of several high-tech bells and whistles that are part of the armor in Trend Micro's new top-of-the-line product, dubbed Security Pro, which sells for $70.

The company is launching the product as it looks to fuel momentum versus rival Symantec Corp's (SYMC.O) Norton security software, closely held No. 3 player Web Root Software Inc. and McAfee Inc (MFE.N).

Trend Micro's market sales have been soaring for the past two years in the United States. Its market share has grown from 2 percent of market by revenue in 2005 to 14 percent this year, according to NPD Group surveys of 49 U.S. retailers from January to August.

Meanwhile Symantec's market share fell from 73 to 56 percent and McAfee's dropped to fourth place, with 7 percent share, from 12 percent, during the same period. Web Root grew from 8 percent to 12 percent, according to NPD.

Analysts attribute the Japanese software maker's growth to products with broad functionality and solid protection.

It has won top ratings from reviewers such as the U.S. magazine Consumer Reports and endorsements from Best Buy's (BBY.N) Geek Squad computer repair service, which advises customers to install Trend Micro products over competing virus software.